The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation), today announced that commercial contracting is complete for Phase I of the Partnership’s Cajun-Sibon natural gas liquids (NGL) extension and Eunice fractionator expansion. With contracts for third-party volumes in excess of 60,000 barrels per day and the Partnership’s equity volumes, the Partnership expects to begin operations at the project’s initial capacity of 70,000 barrels per day.
Phase I includes a 130-mile, 12-inch-diameter pipeline that will extend the Partnership’s existing 440-mile Cajun-Sibon NGL pipeline system and connect Crosstex’s Eunice NGL fractionation facility in south central Louisiana to Mont Belvieu supply pipelines in East Texas. As part of the project, the Eunice fractionator will also be expanded from 15,000 barrels to 55,000 barrels of NGL per day, increasing the Partnership’s interconnected fractionation capacity in Louisiana to approximately 97,000 barrels per day of NGLs.
The Partnership expects that Phase I facilities will be operational in the second quarter of 2013. The capital cost for the Phase I project is approximately $230 million. The pipeline extension and fractionation expansion allow the Partnership to provide gas producers and midstream companies an improved NGL transportation, fractionation and marketing alternative to Mont Belvieu. Key customers that have made long-term supply commitments to the project include BP Products North America, Inc., Markwest Energy East Texas Gas Company, L.L.C., and TexStar Midstream Services, L.P., as well as other significant midstream companies.
Crosstex also announced that it is finalizing engineering and has begun negotiating long-term agreements for Phase II of the project, which is being developed in response to the strong interest shown by both midstream and producer customers. Phase II would provide transportation and fractionation capacity for an incremental 50,000 barrels of NGL per day as an alternative to Mont Belvieu. If implemented, the Phase II expansion could be completed in 2014.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV